PIP insurance the law again: Are you covered?
No-fault insurance requirement began Jan. 1
BY PETE SKIBA Florida Weekly Correspondent

Personal injury protection, no-fault insurance, returned to Florida Jan. 1 more with a ripple than a Tsunami.

The requirement for all Florida drivers to carry the coverage commonly called PIP coverage was mandatory in Florida but the Legislature let the law lapse on Oct. 1. Legislators said the system was wrought with fraud.

However, pressure from medical groups and public hospitals forced legislators to come up with a new law that Gov. Charlie Crist signed on Oct. 11. Insurance companies were opposed to reinstating the PIP law. They claimed the system drives up premiums for policyholders because of fraudulent claims.

PIP, or no-fault insurance, generally pays for medical and other expenses related to an auto accident regardless of who is at fault.

Local law enforcement agencies report that they give a grace period for offenders who might not have the paperwork for the coverage required by the state.

And the coverage's additional cost probably won't make anyone miss a meal let alone go homeless.

"The costs vary county by county and age, driving history and type of car," said David Thompson, a spokesman with Florida Association of Insurance Agents, in Tallahassee. "Bigger cities get bigger rates, but it shouldn't be more than $100 for six months like it is here for my car."

An attorney with a practice in personal injury likes the law.

"Anything that helps injured drivers with their bills is good from our standpoint," said Bruce L. Scheiner, an attorney with Associates and Bruce L. Scheiner. "The more coverage for my clients, the better off they are. We'd love to see the cap increased."

As it stands, the law requires drivers to carry at least $10,000 worth of personal injury coverage.

"We support the reestablishment of no-fault insurance," said Rich Rasmussen, vice president of strategic communications for the Florida Hospital Association.

"In the future we would like to see the cap increased. It was at $10,000 in 1971, in 2007 (costs) that is about $2,000 of care."

Yet there may be some confusion for drivers.

If a driver's auto insurance was renewed after Oct. 1 the premiums might not have included the coverage. The premiums without the coverage were a bit lower, but probably not enough to send off prayers of thanks.

The requirement to notify the insured that they needed to reinstate the personal injury protection must have been mailed out by Nov. 15, according to the new law, sponsored by Rep. Ellen Bogdanoff, R-Fort Lauderdale, and Sen. Bill Posey, R-Rockledge.

That was just in time for the usual Christmas rush to the post office.

If drivers have not received their new coverage for whatever reason they need not fear Lee County law enforcement officials.

"Our standards have us giving 90 days with a new law for a driver to prove they have insurance," said Lee County Sheriff's Capt. Linda King. "The fine for not having insurance is $69.50. The fine for not having a card is $7.50."

The fines are a couple bucks higher in Fort Myers, said Maureen Buice, police spokeswoman. But city police require proof of insurance within 30 days.

"If drivers don't have their cards with them, they could be cited for no insurance after Jan. 1," Buice said. "But they have a reasonable time to get the proof in.